- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 8. Equity Valuation: Concepts and Basic Tools
- Subject 1. Estimated Value and Market Price
CFA Practice Question
If an analyst estimates a security's intrinsic value to be $15 based on its sales-per-share figure of $6.15, the analyst must be using a ______ in the valuation process.
B. multiplier model
C. asset-based valuation model
A. present value model
B. multiplier model
C. asset-based valuation model
Correct Answer: B
The analyst must be using a multiplier model based on the P/S multiple.
User Contributed Comments 2
| User | Comment |
|---|---|
| warnggg | Pretty straight forward here... |
| zriddle | Ratio = Multiplier Model |